Critical Indicators for Improving Compliance of Fuel Trading Business Entities in Indonesia
DOI:
https://doi.org/10.22219/JTIUMM.Vol25.No1.73-82Keywords:
Business, Compliance, Fuel oil, Indicator, IndonesiaAbstract
Fuel oil is one of Indonesia's most dominant types of energy, making it important to have strict oversight and regulation of its supply and distribution. This research aims to identify compliance indicators for fuel trading business entities in the downstream oil and gas sector and develop guidelines to monitor and improve the level of compliance of these entities. The method used in this research is the Analytical Hierarchy Process (AHP). The results showed ten relevant compliance indicators: waste management, resource use, occupational accident rate, safety training, audits and inspections, regulatory violations, social and community contributions, stakeholder satisfaction, operational efficiency, and tax and financial compliance. Of the ten indicators, the highest weight is obtained from regulatory violations at 42%, followed by the work accident rate at 22%. These findings provide a strong basis for monitoring and improving compliance in the oil and gas trading business and supporting better and sustainable energy management in Indonesia.
Downloads
References
B. K. Sovacool and M. H. Dworkin, "Energy justice: Conceptual insights and practical applications," Applied energy, vol. 142, pp. 435-444, 2015. https://doi.org/10.1016/j.apenergy.2015.01.002
T. L. Saaty, "The analytic hierarchy process (AHP)," The Journal of the Operational Research Society, vol. 41, no. 11, pp. 1073-1076, 1980.
M. Sadeghi and A. Ameli, "An AHP decision making model for optimal allocation of energy subsidy among socio-economic subsectors in Iran," Energy Policy, vol. 45, pp. 24-32, 2012. https://doi.org/10.1016/j.enpol.2011.12.045
M. Reisi, A. Afzali, and L. Aye, "Applications of analytical hierarchy process (AHP) and analytical network process (ANP) for industrial site selections in Isfahan, Iran," Environmental earth sciences, vol. 77, pp. 1-13, 2018. https://doi.org/10.1007/s12665-018-7702-1
P. Ahadi, F. Fakhrabadi, A. Pourshaghaghy, and F. Kowsary, "Optimal site selection for a solar power plant in Iran via the Analytic Hierarchy Process (AHP)," Renewable Energy, vol. 215, p. 118944, 2023. https://doi.org/10.1016/j.renene.2023.118944
A. Toossi, F. Camci, and L. Varga, "Developing an AHP based decision model for energy systems policy making," 2013, pp. 1456-1460: IEEE. https://doi.org/10.1109/ICIT.2013.6505886
C. A. Marenco-Porto, C. Nieto-Londoño, L. Lopera, A. Escudero-Atehortua, M. Giraldo, and H. Jouhara, "Evaluation of Organic Rankine Cycle alternatives for the cement industry using Analytic Hierarchy Process (AHP) methodology and energy-economic-environmental (3E) analysis," energy, vol. 281, p. 128304, 2023. https://doi.org/10.1016/j.energy.2023.128304
Y. You and L. Yi, "Energy industry Carbon neutrality transition path: Corpus-based AHP-DEMATEL system modelling," Energy Reports, vol. 8, pp. 25-39, 2022. https://doi.org/10.1016/j.egyr.2022.01.108
K. Y. Ravelo-Mendivelso, M. T. Villate-Fonseca, J. D. Hernández-Vásquez, O. M. Miranda-Samper, P. J. Pacheco-Torres, and M. J. Campuzano, "Thermal and Hydrodynamic Performance Analysis of a Shell and Tube Heat Exchanger Using the AHP Multi-criteria Method," International Journal of Technology, vol. 14, no. 3, pp. 522-535, 2023. https://doi.org/10.14716/ijtech.v14i3.6000
D. S. Wijaya and D. S. Widodo, "Evaluation supplier involve on food safety and Halal criteria using fuzzy AHP: a case study in Indonesia," Jurnal Teknik Industri, vol. 23, no. 1, pp. 67-78, 2022. https://doi.org/10.22219/JTIUMM.Vol23.No1.67-78
M. H. Al Hazza, A. Abdelwahed, M. Y. Ali, and A. B. A. Sidek, "An integrated approach for supplier evaluation and selection using the delphi method and analytic hierarchy process (AHP): A new framework," Int. J. Technol, vol. 13, no. 1, pp. 16-25, 2022. https://doi.org/10.14716/ijtech.v13i1.4700
D. M. Utama, T. Baroto, M. F. Ibrahim, and D. S. Widodo, "Evaluation of supplier performance in plastic manufacturing industry: a case study," 2021, vol. 1845, p. 012016: IOP Publishing. https://doi.org/10.1088/1742-6596/1845/1/012016
T. E. Saputro, Z. H. A. M. Khusna, and S. K. Dewi, "Sustainable supplier selection and order allocation using Integrating AHP-TOPSIS and goal programming," Jurnal Teknik Industri, vol. 24, no. 2, pp. 141-156, 2023. https://doi.org/10.22219/JTIUMM.Vol24.No2.141-156
D. M. Utama, B. Maharani, and I. Amallynda, "Integration Dematel and ANP for the supplier selection in the textile industry: A case study," Jurnal Ilmiah Teknik Industri, vol. 20, no. 1, pp. 119-130, 2021. https://doi.org/10.23917/jiti.v20i1.13806
D. M. Utama, "AHP and TOPSIS integration for green supplier selection: A case study in Indonesia," 2021, vol. 1845, p. 012015: IOP Publishing. https://doi.org/10.1088/1742-6596/1845/1/012015
D. M. Utama, M. S. Asrofi, and I. Amallynda, "Integration of AHP-MOORA algorithm in green supplier selection in the Indonesian textile industry," 2021, vol. 1933, p. 012058: IOP Publishing. https://doi.org/10.1088/1742-6596/1933/1/012058
S. I. Satoglu and I. Türkekul, "Selection of Material Handling Equipment using the AHP and MOORA," Jurnal Teknik Industri, vol. 22, no. 1, pp. 113-124, 2021. https://doi.org/10.22219/JTIUMM.Vol22.No1.113-124
S. Buana, K. Yano, and T. Shinoda, "Design Evaluation Methodology for Ships’ Outfitting Equipment by Applying Multi-criteria Analysis: Proper Choices Analysis of Ballast Water Management Systems," International Journal of Technology, vol. 13, no. 2, pp. 310-320, 2022. https://doi.org/10.14716/ijtech.v13i2.5087
A. Nugraha, A. Widianto, M. Irfan, M. Nasar, and M. Lestandy, "Decision Support System for Community Housing Subsidy Recipients," Jurnal Teknik Industri, vol. 21, no. 1, pp. 104-114, 2020. https://doi.org/10.22219/JTIUMM.Vol21.No1.104-114
H. Sari and D. A. Nurhadi, "Designing marketing strategy based on value from clothing-producing companies using the AHP and Delphi methods," Jurnal Teknik Industri, vol. 20, no. 2, pp. 191-203, 2019. https://doi.org/10.22219/JTIUMM.Vol20.No2.191-203
G. Baskoro, E. Sarwono, G. A. Subekti, D. Hendriana, and H. Nasution, "Selection for technology acquisition using AHP: a case study of Tulip VAWT effectiveness," Jurnal Teknik Industri, vol. 25, no. 1, 2024. https://doi.org/10.22219/JTIUMM.Vol25.No1.1-12
W. Hadikurniawati, E. Winarno, T. D. Cahyono, and D. Abdullah, "Comparison of AHP-TOPSIS hybrid methods, WP and SAW for multi-attribute decision-making to select the best electrical expert," 2018, vol. 1114, p. 012100: IOP Publishing. https://doi.org/10.1088/1742-6596/1114/1/012100
T.-Y. Chou and G.-S. Liang, "Application of a fuzzy multi-criteria decision-making model for shipping company performance evaluation," Maritime Policy & Management, vol. 28, no. 4, pp. 375-392, 2001. https://doi.org/10.1080/03088830110049951
R. Gharizadeh Beiragh et al., "An integrated multi-criteria decision making model for sustainability performance assessment for insurance companies," sustainability, vol. 12, no. 3, p. 789, 2020. https://doi.org/10.3390/su12030789
N. Rahmatin, I. Santoso, C. Indriani, S. Rahayu, and S. Widyaningtyas, "Integration of the fuzzy failure mode and effect analysis (fuzzy FMEA) and the analytical network process (ANP) in marketing risk analysis and mitigation," International Journal of Technology, vol. 9, no. 4, 2018. https://doi.org/10.14716/ijtech.v9i4.2197
Z. Ilham et al., "Analysing dimensions and indicators to design energy education framework in Malaysia using the analytic hierarchy process (AHP)," Energy Reports, vol. 8, pp. 1013-1024, 2022. https://doi.org/10.1016/j.egyr.2022.07.126
Y. Liu, C. M. Eckert, and C. Earl, "A review of fuzzy AHP methods for decision-making with subjective judgements," Expert systems with applications, vol. 161, p. 113738, 2020. https://doi.org/10.1016/j.eswa.2020.113738
R. J. Heffron and D. McCauley, "The concept of energy justice across the disciplines," Energy policy, vol. 105, pp. 658-667, 2017. https://doi.org/10.1016/j.enpol.2017.03.018
T. L. Saaty, "Decision making—the analytic hierarchy and network processes (AHP/ANP)," Journal of systems science and systems engineering, vol. 13, pp. 1-35, 2004. https://doi.org/10.1007/s11518-006-0151-5
A. U. Khan and Y. Ali, "AHP & ANP techniques and their applications: Twenty years review from 2000 to 2019," International Journal of the Analytic Hierarchy Process, vol. 12, no. 3, 2020. https://doi.org/10.13033/ijahp.v12i3.822
R. de Fsm Russo and R. Camanho, "Criteria in AHP: A systematic review of literature," Procedia Computer Science, vol. 55, pp. 1123-1132, 2015. https://doi.org/10.1016/j.procs.2015.07.081
H. Taherdoost, "Decision making using the analytic hierarchy process (AHP); A step by step approach," International Journal of Economics and Management Systems, vol. 2, 2017.
S. Sadiq and G. Governatori, "Managing regulatory compliance in business processes," in Handbook on Business Process Management 2: Strategic Alignment, Governance, People and Culture: Springer, 2014, pp. 265-288.
J. K. Seadon, "Sustainable waste management systems," Journal of cleaner production, vol. 18, no. 16-17, pp. 1639-1651, 2010. https://doi.org/10.1016/j.jclepro.2010.07.009
S. Das, S. H. Lee, P. Kumar, K.-H. Kim, S. S. Lee, and S. S. Bhattacharya, "Solid waste management: Scope and the challenge of sustainability," Journal of cleaner production, vol. 228, pp. 658-678, 2019. https://doi.org/10.1016/j.jclepro.2019.04.323
B. Jung and J. Joo, "Blind Obedience to Environmental Friendliness: The Goal Will Set Us Free," sustainability, vol. 13, no. 21, p. 12322, 2021. https://doi.org/10.3390/su132112322
W. Zhang, W. Ma, Y. Ji, M. Fan, O. Oenema, and F. Zhang, "Efficiency, economics, and environmental implications of phosphorus resource use and the fertilizer industry in China," Nutrient Cycling in Agroecosystems, vol. 80, pp. 131-144, 2008. https://doi.org/10.1007/s10705-007-9126-2
C. Melchior and R. R. Zanini, "Mortality per work accident: A literature mapping," Safety Science, vol. 114, pp. 72-78, 2019. https://doi.org/10.1016/j.ssci.2019.01.001
L. S. Robson et al., "A systematic review of the effectiveness of occupational health and safety training," Scandinavian journal of work, environment & health, pp. 193-208, 2012. https://doi.org/10.5271/sjweh.3259
B. Wright, "Audits and Inspections," in A Comprehensive and Practical Guide to Clinical Trials: Elsevier, 2017, pp. 181-183.
D. Jamali and R. Mirshak, "Corporate social responsibility (CSR): Theory and practice in a developing country context," Journal of business ethics, vol. 72, pp. 243-262, 2007. https://doi.org/10.1007/s10551-006-9168-4
L. N. Wati and M. M. Se, Model Corporate Social Responsibility (CSR). myria publisher, 2019.
L. Fonseca, A. Ramos, Á. l. Rosa, A. C. Braga, and P. Sampaio, "Stakeholders satisfaction and sustainable success," International Journal of Industrial and Systems Engineering, vol. 24, no. 2, pp. 144-157, 2016. https://doi.org/10.1504/IJISE.2016.078899
C.-Y. Lee and A. L. Johnson, "Operational efficiency," Handbook of Industrial and Systems Engineering, Second Edition Industrial Innovation, pp. 17-44, 2013.
K. Devos and K. Devos, "Tax compliance theory and the literature," Factors influencing individual taxpayer compliance behaviour, pp. 13-65, 2014. https://doi.org/10.1007/978-94-007-7476-6_2
D. Musimenta, S. Naigaga, J. Bananuka, and M. S. Najjuma, "Tax compliance of financial services firms: a developing economy perspective," Journal of Money Laundering Control, vol. 22, no. 1, pp. 14-31, 2019. https://doi.org/10.1108/JMLC-01-2018-0007
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 ilham husniyadi, Armand Omar Moeis
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.